Duke Capital Limited · LSE:DUKE
Duke Capital — Investor Presentation (May 2024)
17 slides from Duke Capital's investor presentation, May 2024
Slide 1: Introduction to Duke Capital
Introduction to Duke Capital May 2024 AIM: DUKE
Slide 2: Disclaimer
DISCLAIMER These presentation slides and the accompanying verbal presentation (the “Presentation Materials”), have been prepared by Duke Capital Limited (the “Company”). They do not constitute or form part of any offer or any solicitation for any commitment by the Company in relation to any potentia
Slide 3: Introduction to Duke Capital
INTRODUCTION TO DUKE CAPITAL Private business owners receive capital while retaining control of their business No refinancing risk Retain control of timing for owners of any refinancing event A long term approach Flexible structure to the business relationship alignment between owners & Duke Retain
Slide 4: Why owners should consider private credit
WHY OWNERS SHOULD CONSIDER PRIVATE CREDIT Private credit is a fast-growing area, with direct lending the biggest part of the asset class 2014 Market Size 2023 Market Size 2027E Market Size US$0.5tn1 US$100bn US$1.4tn1 US$650bn US$2.3tn2 US$1.15tn Direct 20% Lending 42% Other: including 50% mezzanine
Slide 5: Our unique attributes - hybrid capital
OUR UNIQUE ATTRIBUTES - HYBRID CAPITAL Combining the best features of both equity & debt; appealing to owners who need capital but want to retain control PRIVATE PRIVATE CREDIT EQUITY DUKE CAPITAL 5-year term, amortisation or bullet Unsecured Senior, mezzanine or junior 30-year amortising Intensive
Slide 6: Our offering – a blend of capital types
OUR OFFERING – A BLEND OF CAPITAL TYPES Duke offers a unique ‘Corporate Mortgage’ while also aligning our returns with the success of the business KEY DRIVERS OF RETURN FOR DUKE HYBRID CREDIT PRODUCT WITH EQUITY FEATURES: • Unique differentiator and key driver of return is our CORPORATE MORTGAGE • L
Slide 7: Clear investment strategy and well-defined use cases
CLEAR INVESTMENT STRATEGY AND WELL-DEFINED USE CASES Duke’s funding solution has been used by owner operators to drive growth and increase shareholder value We allow experienced management teams to WHAT DO WE LOOK FOR? MANAGEMENT become majority owners, backing people who • Cheque sizes of £5 – 30 m
Slide 8: Successful exit strategy proven
SUCCESSFUL EXIT STRATEGY PROVEN Exits form part of Duke’s funding model and validates the flexible form of capital June 2017 – • The lending relationship began in 2017 to fund the Company’s acquisition of ATS December 2020 • Duke financed 6 different transactions over 3 years for a total considerati
Slide 9: Investment process
INVESTMENT PROCESS Duke has partnered with top tier management consulting firms to expedite due diligence and aims to complete transactions within two to three months Start Weeks 1 to 6 Weeks 7 to 10 Weeks 11 to 12 Sign non- Completion Due Definitive binding of Diligence Documents term sheet Transac
Slide 10: Our team
OUR TEAM An experienced management team and investment committee NEIL JOHNSON – CEO CHARLIE CANNON-BROOKES – HUGO EVANS – CFO ALEX HIBBARD – PRINCIPAL, CIO INVESTMENTS • 30 years of experience in • Extensive experience in • London-based Chief senior finance roles within • 10 years of private equity
Slide 11: Duke's investors: top global funds with significant ownership
DUKE’S INVESTORS: TOP GLOBAL FUNDS WITH SIGNIFICANT OWNERSHIP Since listing on the LSE in 2017, a range of blue-chip institutional investors have invested in Duke $9.5 trn $2.6 trn $1.0 trn $1.0 trn AUM AUM AUM AUM $750 bn $500 bn $300 bn $70 bn AUM AUM AUM AUM Fairfax Financial Holdings Limited is
Slide 12: Meet Our Partners
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Slide 13: Our partners
OUR PARTNERS Duke has proven experience investing across a range of sectors, geographies and transaction types March 2024 July 2023 November 2022 December 2021 December 2021 Invested capital: £14.5m Invested capital: US$11.5m Invested capital: £10.8m Invested capital: £19.4m Invested capital: US$21.
Slide 14: Partner: Tristone Healthcare
PARTNER: TRISTONE HEALTHCARE Duke works closely with Tristone to assess and fund new M&A opportunities as part of their buy and build strategy Initial obligation Initial Investment Current Exposure Transaction type £10.5m £19.4m Debt Refinancing & Buy & Build (incl. principal) 13.5% Company overview
Slide 15: Partner: New Path Fire and Security
PARTNER: NEW PATH FIRE AND SECURITY Since our relationship began in 2022, Duke’s capital has been used to fund further M&A for the Group Initial obligation Initial Investment Current Exposure Transaction type £5.0m £10.8m Debt Refinancing & Buy & Build (incl. principal) 13.5% Company overview • New
Slide 16: Partner: Glasshouse
PARTNER: GLASSHOUSE The MBO of Glasshouse comprised a $11.5m investment plus a minority equity investment representing a 9.9% ownership stake Initial obligation Initial Investment Current Exposure Transaction type $11.5m $11.5m MBO (incl. principal) 13.5% Company overview • Founded in 2002 in Texas,
Slide 17: Duke Capital
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